References in this announcement to “R” are to South African Rand and references to “U.S. Dollars” and “$” are to United States Dollars. Unless otherwise stated MiX Telematics has translated U.S. Dollar amounts from South African Rand at the exchange rate of R11.5719 per $1.00, which was the R/$ exchange rate reported by the South African Reserve Bank as of December 31, 2014.
Third Quarter Highlights:
- Total subscription revenue of R253.7 million ($21.9 million), grew 15% year over year
- Subscribers increased by 16% year over year, bringing the total to over 495,000 subscribers at December 31, 2014
- Adjusted EBITDA of R68.4 million ($5.9 million), representing a 19% Adjusted EBITDA margin
- Company raises guidance for subscription revenue, total revenue and Adjusted EBITDA for the full 2015 fiscal year which ends March 31, 2015.
MIDRAND, South Africa--(BUSINESS WIRE)--MiX Telematics Limited (NYSE:MIXT) (JSE:MIX), a leading global provider
of fleet and mobile asset management solutions delivered as
Software-as-a-Service ("SaaS"), today announced financial results for
its third quarter of fiscal year 2015, which ended December 31, 2014.
"Despite ongoing macro-economic headwinds and geopolitical unrest in key
sales regions, our business continues to grow profitably. We have again
posted an adjusted EBITDA margin in excess of 19% while investing in
growth initiatives, particularly sales and marketing related efforts.
This has improved our traction in the Americas where we had key wins in
South America and the development of a strong North American pipeline in
the quarter," said Stefan Joselowitz, Chief Executive Officer of MiX
Telematics. "We reached 495,000 total subscribers in the quarter, making
us one of the largest fleet management providers in the world and we
remain the only provider that has scaled global operations.
Additionally, with our affordable Beam-e solution, we are in the early
stages of tapping the incremental opportunity in asset tracking which is
being adopted equally by our enterprise installed base and by consumers
seeking a cost-effective solution for vehicle recovery. We continue to
believe the combination of our global footprint, our penetration of
large fleets of multi-national enterprises, best-in-class technology and
ability to tap incremental growth markets with innovations like Beam-e
have us poised to capture a significant portion of the growing
telematics opportunity."
Financial performance for the three months
ended December 31, 2014
Revenue: Total revenue was R351.5 million ($30.4 million), an
increase of 13.4% compared to R309.8 million ($26.8 million) for the
third quarter of fiscal year 2014. Subscription revenue was R253.7
million ($21.9 million), an increase of 15.4% compared with
R219.8 million ($19.0 million) for the third quarter of fiscal year
2014. Growth in subscription revenue was driven primarily by an increase
of over 66,000 subscribers, which resulted in an increase in subscribers
of 15.6% from December 2013 to December 2014. Hardware and other revenue
was R97.8 million ($8.5 million), an increase of 8.7% compared to R90.0
million ($7.8 million) for the third quarter of fiscal year 2014.
Gross Margin: Gross profit was R230.6 million ($19.9 million), as
compared to R206.3 million ($17.8 million) for the third quarter of
fiscal year 2014. Gross profit margin was 65.6%, compared to 66.6% for
the third quarter of fiscal year 2014.
Operating Margin: Operating profit was R31.0 million ($2.7
million), compared to R38.4 million ($3.3 million) for the third quarter
of fiscal year 2014. Operating margin was 8.8%, compared to 12.4% for
the third quarter of fiscal year 2014. The decline in the operating
margin is primarily as a result of restructuring costs of R10.6 million
($0.9 million) incurred by the company in the Africa and the Middle East
and Australasia segments.
Adjusted EBITDA: Adjusted EBITDA, a non-IFRS measure, was R68.4
million ($5.9 million) compared to R65.5 million ($5.7 million) for the
third quarter of fiscal year 2014. Adjusted EBITDA margin, a non-IFRS
measure, for the third quarter of fiscal year 2015 was 19.5%, compared
to 21.1% for the third quarter of fiscal year 2014.
Profit for the period and earnings per share: Profit for the
period was R31.9 million ($2.8 million), compared to R44.6 million
($3.9 million) in the third quarter of fiscal year 2014. Earnings per
diluted ordinary share were 4 South African cents, compared to 6 South
African cents in the third quarter of fiscal year 2014. For the third
quarter of 2015, the calculation was based on diluted weighted average
ordinary shares in issue of 804.4 million compared to 808.7 million
diluted weighted average ordinary shares in issue during the third
quarter of fiscal 2014.
The Company's effective tax rate for the quarter was 37.3% in comparison
to 29.5% in the third quarter of fiscal 2014.
On a U.S. Dollar basis, and using the December 31, 2014 exchange rate of
R11.5719 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
American Depositary Share ("ADS"), profit for the period was $2.8
million, or 9 U.S. cents per diluted ADS.
Adjusted earnings for the period and adjusted earnings per share:
Adjusted earnings for the period, a non-IFRS measure, was R20.4 million
($1.8 million), compared to R26.8 million ($2.3 million) in the third
quarter of the 2014 fiscal year and excludes a net foreign exchange gain
of R17.7 million ($1.5 million). Adjusted earnings per diluted ordinary
share, also a non-IFRS measure, were 3 South African cents, compared to
3 South African cents in the third quarter of fiscal year 2014.
On a U.S. Dollar basis, and using the December 31, 2014 exchange rate of
R11.5719 per U.S. Dollar, and at a ratio of 25 ordinary shares to one
ADS, adjusted profit for the period was $1.8 million, or 5 U.S. cents
per diluted ADS.
Statement of Financial Position and Cash Flow: At December 31,
2014, the Company had R875.7 million ($75.7 million) of cash and cash
equivalents, compared to R830.4 million ($71.8 million) in the fourth
quarter of fiscal year 2014. The Company generated R60.6 million ($5.2
million) in net cash from operating activities for the three months
ended December 31, 2014 and invested R31.3 million ($2.7 million) in
capital expenditures during the quarter, leading to free cash flow, a
non-IFRS measure, of R29.3 million ($2.5 million) for the third quarter
of fiscal year 2015, compared with free cash flow of R17.2 million ($1.5
million) for the third quarter of fiscal year 2014.
An explanation of non-IFRS measures used in this release is set out in
the Non-IFRS financial measures section of this press release. A
reconciliation of these non-IFRS measures to the most directly
comparable IFRS measures is provided in the financial tables that
accompany this release.
Business Outlook
MiX Telematics has translated U.S. Dollar amounts in this Business
Outlook paragraph from South African Rand at the exchange rate of
R11.5546 per $1.00, which was the R/$ exchange rate reported by the
South African Reserve Bank as of February 10, 2015.
Based on information as of today, February 12, 2015, the Company is
issuing the following financial guidance for the full 2015 fiscal year:
-
Revenue - R1,345 million to R1,355 million ($116.4 million to $117.3
million), which would represent revenue growth of 5.8% to 6.6%
compared to fiscal year 2014.
-
Subscription revenue - R985 million to R995 million ($85.2 million to
$86.1 million), which would represent subscription revenue growth of
15.4% to 16.5% compared to fiscal year 2014.
-
Adjusted EBITDA - R255 million to R260 million ($22.1 million to $22.5
million), which would represent a decline in Adjusted EBITDA of 9.6%
to 7.9% compared to fiscal year 2014.
-
Adjusted earnings per diluted ordinary share of 10.5 to 12 South
African cents based on 801 million diluted ordinary shares in issue,
and based on an effective tax rate of 32% to 36%. At a ratio of 25
ordinary shares to one ADS, this equates to adjusted earnings per
diluted ADS of 23 to 26 U.S. cents.
For the fourth quarter of fiscal year 2015 the Company expects
subscription revenue to be in the range of R253 million to R263 million
($21.9 million to $22.8 million) which would represent subscription
revenue growth of 8.8% to 13.1% compared to the fourth quarter of fiscal
year 2014.
The key assumptions used in deriving the forecast are as follows:
-
Growth in subscription revenue and vehicles under subscription are
based on expected growth rates related to market conditions and takes
into account growth rates achieved previously.
-
Achieving hardware sales according to expectations. Hardware sales are
dependent on the volumes of bundled solutions selected by customers.
The forecast is the responsibility of the board of directors and has not
been reviewed or reported on by the Company’s external auditors. The
Company’s policy is to give guidance on a quarterly basis, if necessary,
and does not update guidance between quarters.
The information disclosed in this “Business Outlook” paragraph
complies with the disclosure requirements in terms of paragraph 8.38 of
the JSE Listings Requirements which deals with profit forecasts.
Quarterly Reporting Policy in respect of JSE Listings Requirements
Following the listing of the Company’s ADSs on the New York Stock
Exchange, the Company has adopted a quarterly reporting policy. As a
result of such quarterly reporting the Company is, in terms of paragraph
3.4(b)(ix) of the JSE Listings Requirements, not required to publish
trading statements in terms of paragraph 3.4(b)(i) to (viii) of the JSE
Listings Requirements.
Conference Call Information
MiX Telematics management will also host a conference call and audio
webcast at 8:00 a.m. (Eastern Standard Time) and 3:00 p.m. (South
African Time) on February 12, 2015 to discuss the Company's financial
results and current business outlook:
-
The live webcast of the call will be available at the “Investor
Information” page of the Company’s website, http://investor.mixtelematics.com.
-
To access the call, dial 1-888-337-8197 (within the United States) or
0 800 982 089 (within South Africa) or 1-719-325-2492 (outside of the
United States). The conference ID is 1367732.
-
A replay of this conference call will be available for a limited time
at 1-877-870-5176 (within the United States) or 1-858-384-5517 (within
South Africa or outside of the United States). The replay conference
ID is 1367732.
-
A replay of the webcast will also be available for a limited time at http://investor.mixtelematics.com.
About MiX Telematics Limited
MiX Telematics is a leading global provider of fleet and mobile asset
management solutions delivered as SaaS to customers in more than 120
countries. The Company’s products and services provide enterprise
fleets, small fleets and consumers with solutions for safety,
efficiency, risk and security. MiX Telematics was founded in 1996 and
has offices in South Africa, the United Kingdom, the United States,
Uganda, Brazil, Australia and the United Arab Emirates as well as a
network of more than 130 fleet partners worldwide. MiX Telematics shares
are publicly traded on the Johannesburg Stock Exchange (JSE:MIX) and MiX
Telematics American Depositary Shares are listed on the New York Stock
Exchange (NYSE:MIXT). For more information visit www.mixtelematics.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including without limitation, statements concerning our financial
guidance for the fourth quarter and full year of fiscal year 2015, our
position to execute on our growth strategy, and our ability to expand
our leadership position. These forward-looking statements reflect our
current views about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available to us
and on assumptions we have made. Actual results may differ materially
from those described in the forward-looking statements and will be
affected by a variety of risks and factors that are beyond our control
including, without limitation, those described under the caption “Risk
Factors” in the Company’s Annual Report on Form 20-F filed with the
Securities and Exchange Commission (the "SEC"), as updated by other
reports that the Company files with or furnishes to the SEC. The Company
assumes no obligation to update any forward-looking statements contained
in this press release as a result of new information, future events or
otherwise.
Non-IFRS financial measures
Adjusted EBITDA
To provide investors with additional information regarding its financial
results, the Company has disclosed within this press release, Adjusted
EBITDA. Adjusted EBITDA is a non-IFRS financial measure, it does not
represent cash flows from operations for the periods indicated and
should not be considered an alternative to net income as an indicator of
our results of operations or as an alternative to cash flows from
operations as an indicator of liquidity. Adjusted EBITDA is defined as
the profit for the period before income taxes, net interest
income/(expense), depreciation of property, plant and equipment
including capitalized customer in-vehicle devices, amortization of
intangible assets including capitalized in-house development costs,
share-based compensation costs, transaction costs arising from the
acquisition of a business, restructuring costs, profits/(losses) on the
disposal or impairments of assets or subsidiaries, certain litigation
costs, unrealized foreign exchange gains/(losses) and foreign exchange
gains/(losses) related to the cash proceeds raised through the IPO.
Adjusted EBITDA does not have a standardized meaning and, accordingly,
the Company's definition of Adjusted EBITDA may not be comparable to
Adjusted EBITDA as used by other companies.
The Company has included Adjusted EBITDA and Adjusted EBITDA margin in
this press release because they are key measures that the Company's
management and Board of Directors use to understand and evaluate its
core operating performance and trends; to prepare and approve its annual
budget; and to develop short- and long-term operational plans. In
particular, the exclusion of certain expenses in calculating Adjusted
EBITDA and Adjusted EBITDA margin can provide a useful measure for
period-to-period comparisons of the Company's core business.
Accordingly, the Company believes that Adjusted EBITDA and Adjusted
EBITDA margin provides useful information to investors and others in
understanding and evaluating its operating results.
The Company's use of Adjusted EBITDA has limitations as an analytical
tool, and you should not consider this performance measure in isolation
from or as a substitute for analysis of the Company's results as
reported under IFRS. Some of these limitations are:
-
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital expenditure
requirements for such replacements or for new capital expenditure
requirements;
-
Adjusted EBITDA does not reflect changes in, or cash requirements for,
our working capital needs;
-
Adjusted EBITDA does not consider the potentially dilutive impact of
equity-based compensation;
-
Adjusted EBITDA does not reflect tax payments that may represent a
reduction in cash available to the Company;
-
Adjusted EBITDA does not reflect the interest expense or the cash
requirements necessary to service interest payments on the Company's
debt or any losses on the extinguishment of our debt;
-
Adjusted EBITDA does not include interest earned on cash and cash
equivalents and other financial assets;
-
Adjusted EBITDA does not include certain foreign currency transaction
gains and losses; and
-
other companies, including companies in our industry, may calculate
Adjusted EBITDA differently, which reduces its usefulness as a
comparative measure.
Because of these limitations, you should consider Adjusted EBITDA and
Adjusted EBITDA margin alongside other financial performance measures,
including operating profit, profit for the period and our other results.
Adjusted Profit and Adjusted Earnings Per Share
Adjusted profit and adjusted earnings per share is defined as profit
attributable to owners of the parent excluding net foreign exchange
gains/(losses) net of tax for the relevant period.
Free cash flow
Free cash flow is determined as net cash generated from operating
activities less capital expenditure per investing activities.
|
MIX TELEMATICS LIMITED
|
|
CONDENSED CONSOLIDATED INCOME STATEMENTS
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Revenue
|
|
351,484
|
|
|
309,823
|
|
|
30,374
|
|
|
26,774
|
|
|
Cost of sales
|
|
(120,840
|
)
|
|
(103,527
|
)
|
|
(10,443
|
)
|
|
(8,946
|
)
|
|
Gross profit
|
|
230,644
|
|
|
206,296
|
|
|
19,931
|
|
|
17,828
|
|
|
Other income/(expenses) - net
|
|
3,037
|
|
|
307
|
|
|
262
|
|
|
27
|
|
|
Operating expenses
|
|
(202,669
|
)
|
|
(168,199
|
)
|
|
(17,514
|
)
|
|
(14,535
|
)
|
|
-Sales and marketing
|
|
(43,503
|
)
|
|
(37,215
|
)
|
|
(3,759
|
)
|
|
(3,216
|
)
|
|
-Administration and other charges
|
|
(159,166
|
)
|
|
(130,984
|
)
|
|
(13,755
|
)
|
|
(11,319
|
)
|
|
Operating profit
|
|
31,012
|
|
|
38,404
|
|
|
2,679
|
|
|
3,320
|
|
|
Finance income/(costs) - net
|
|
19,864
|
|
|
24,921
|
|
|
1,716
|
|
|
2,154
|
|
|
-Finance income
|
|
20,241
|
|
|
25,654
|
|
|
1,749
|
|
|
2,217
|
|
|
-Finance costs
|
|
(377
|
)
|
|
(733
|
)
|
|
(33
|
)
|
|
(63
|
)
|
|
Profit before taxation
|
|
50,876
|
|
|
63,325
|
|
|
4,395
|
|
|
5,474
|
|
|
Taxation
|
|
(18,978
|
)
|
|
(18,708
|
)
|
|
(1,640
|
)
|
|
(1,617
|
)
|
|
Profit for the period
|
|
31,898
|
|
|
44,617
|
|
|
2,755
|
|
|
3,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owners of the parent
|
|
31,991
|
|
|
44,617
|
|
|
2,763
|
|
|
3,857
|
|
|
Non-controlling interests
|
|
(93
|
)
|
|
*
|
|
|
(8
|
)
|
|
*
|
|
|
|
|
31,898
|
|
|
44,617
|
|
|
2,755
|
|
|
3,857
|
|
|
* Amounts less than $1,000/R1,000
|
|
|
|
|
|
MIX TELEMATICS LIMITED
|
|
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
December 31,
2014
|
|
March 31,
2014
|
|
December 31,
2014
|
|
March 31,
2014
|
|
|
|
Unaudited
|
|
Audited
|
|
Unaudited
|
|
Unaudited
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment
|
|
139,853
|
|
|
129,079
|
|
|
12,086
|
|
|
11,155
|
|
|
Intangible assets
|
|
772,032
|
|
|
692,190
|
|
|
66,716
|
|
|
59,816
|
|
|
Available-for-sale financial asset
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Finance lease receivable
|
|
1,712
|
|
|
6,677
|
|
|
148
|
|
|
577
|
|
|
Deferred tax assets
|
|
27,266
|
|
|
19,825
|
|
|
2,356
|
|
|
1,713
|
|
|
Total non-current assets
|
|
940,863
|
|
|
847,771
|
|
|
81,306
|
|
|
73,261
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
52,057
|
|
|
39,774
|
|
|
4,499
|
|
|
3,437
|
|
|
Trade and other receivables
|
|
262,217
|
|
|
234,839
|
|
|
22,660
|
|
|
20,294
|
|
|
Finance lease receivable
|
|
6,921
|
|
|
6,652
|
|
|
598
|
|
|
575
|
|
|
Taxation
|
|
7,905
|
|
|
7,336
|
|
|
683
|
|
|
634
|
|
|
Restricted cash
|
|
31,479
|
|
|
10,279
|
|
|
2,720
|
|
|
888
|
|
|
Cash and cash equivalents
|
|
875,706
|
|
|
830,449
|
|
|
75,675
|
|
|
71,764
|
|
|
Total current assets
|
|
1,236,285
|
|
|
1,129,329
|
|
|
106,835
|
|
|
97,592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
2,177,148
|
|
|
1,977,100
|
|
|
188,141
|
|
|
170,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stated capital
|
|
1,436,993
|
|
|
1,429,250
|
|
|
124,180
|
|
|
123,510
|
|
|
Other reserves
|
|
(31,575
|
)
|
|
(58,335
|
)
|
|
(2,729
|
)
|
|
(5,041
|
)
|
|
Retained earnings
|
|
397,907
|
|
|
300,725
|
|
|
34,386
|
|
|
25,988
|
|
|
Equity attributable to owners of the parent
|
|
1,803,325
|
|
|
1,671,640
|
|
|
155,837
|
|
|
144,457
|
|
|
Non-controlling interest
|
|
(744
|
)
|
|
(10
|
)
|
|
(64
|
)
|
|
(1
|
)
|
|
Total equity
|
|
1,802,581
|
|
|
1,671,630
|
|
|
155,773
|
|
|
144,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings
|
|
1,456
|
|
|
2,462
|
|
|
126
|
|
|
213
|
|
|
Deferred tax liabilities
|
|
53,616
|
|
|
20,601
|
|
|
4,633
|
|
|
1,780
|
|
|
Provisions
|
|
2,878
|
|
|
2,282
|
|
|
249
|
|
|
197
|
|
|
Share-based payment liability
|
|
1,950
|
|
|
—
|
|
|
169
|
|
|
—
|
|
|
Total non-current liabilities
|
|
59,900
|
|
|
25,345
|
|
|
5,177
|
|
|
2,190
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade and other payables
|
|
240,474
|
|
|
228,961
|
|
|
20,780
|
|
|
19,785
|
|
|
Borrowings
|
|
1,368
|
|
|
1,279
|
|
|
118
|
|
|
111
|
|
|
Taxation
|
|
9,583
|
|
|
2,912
|
|
|
828
|
|
|
252
|
|
|
Provisions
|
|
28,240
|
|
|
19,163
|
|
|
2,440
|
|
|
1,656
|
|
|
Bank overdraft
|
|
35,002
|
|
|
27,810
|
|
|
3,025
|
|
|
2,403
|
|
|
Total current liabilities
|
|
314,667
|
|
|
280,125
|
|
|
27,191
|
|
|
24,207
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
374,567
|
|
|
305,470
|
|
|
32,368
|
|
|
26,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity and liabilities
|
|
2,177,148
|
|
|
1,977,100
|
|
|
188,141
|
|
|
170,853
|
|
|
|
|
MIX TELEMATICS LIMITED
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash generated from operations
|
|
58,655
|
|
|
52,544
|
|
|
5,069
|
|
|
4,541
|
|
|
Net financing income
|
|
2,059
|
|
|
221
|
|
|
178
|
|
|
19
|
|
|
Taxation paid
|
|
(72
|
)
|
|
(2,628
|
)
|
|
(6
|
)
|
|
(227
|
)
|
|
Net cash generated from operating activities
|
|
60,642
|
|
|
50,137
|
|
|
5,241
|
|
|
4,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure
|
|
(31,312
|
)
|
|
(32,966
|
)
|
|
(2,706
|
)
|
|
(2,849
|
)
|
|
Deferred consideration paid
|
|
(311
|
)
|
|
—
|
|
|
(27
|
)
|
|
—
|
|
|
Proceeds on sale of property, plant and equipment and intangible
assets
|
|
2
|
|
|
795
|
|
|
*
|
|
|
69
|
|
|
Cash paid for business combination
|
|
(40,000
|
)
|
|
—
|
|
|
(3,457
|
)
|
|
—
|
|
|
Increase in restricted cash
|
|
(17,896
|
)
|
|
(1,228
|
)
|
|
(1,547
|
)
|
|
(106
|
)
|
|
Net cash used in investing activities
|
|
(89,517
|
)
|
|
(33,399
|
)
|
|
(7,737
|
)
|
|
(2,886
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares
|
|
1,960
|
|
|
1,473
|
|
|
169
|
|
|
127
|
|
|
Share issue expenses incurred in anticipation of foreign listing
|
|
—
|
|
|
(11,498
|
)
|
|
—
|
|
|
(994
|
)
|
|
Dividends paid to company's shareholders
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
*
|
|
|
Repayment of borrowings
|
|
—
|
|
|
(68
|
)
|
|
—
|
|
|
(6
|
)
|
|
Net cash generated from/(used in) financing activities
|
|
1,960
|
|
|
(10,095
|
)
|
|
169
|
|
|
(873
|
)
|
|
Net (decrease)/increase in cash and cash equivalents
|
|
(26,915
|
)
|
|
6,643
|
|
|
(2,327
|
)
|
|
574
|
|
|
Net cash and cash equivalents at the beginning of the period
|
|
847,608
|
|
|
703,286
|
|
|
73,247
|
|
|
60,775
|
|
|
Exchange gains on cash and cash equivalents
|
|
20,011
|
|
|
25,081
|
|
|
1,730
|
|
|
2,167
|
|
|
Net cash and cash equivalents at the end of the period
|
|
840,704
|
|
|
735,010
|
|
|
72,650
|
|
|
63,516
|
|
|
* Amounts less than $1,000/R1,000
|
|
|
|
|
MIX TELEMATICS LIMITED
|
|
OTHER FINANCIAL AND OPERATING DATA
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands except for subscribers
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Subscription revenue
|
|
253,661
|
|
|
219,835
|
|
|
21,920
|
|
|
18,997
|
|
|
Adjusted EBITDA
|
|
68,385
|
|
|
65,512
|
|
|
5,909
|
|
|
5,663
|
|
|
Cash and cash equivalents
|
|
875,706
|
|
|
792,576
|
|
|
75,675
|
|
|
68,491
|
|
|
Net cash
|
|
837,880
|
|
|
731,056
|
|
|
72,406
|
|
|
63,175
|
|
|
Capital expenditure
|
|
31,312
|
|
|
32,966
|
|
|
2,706
|
|
|
2,849
|
|
|
Subscribers (number)
|
|
495,367
|
|
|
428,509
|
|
|
495,367
|
|
|
428,509
|
|
|
|
Notes to condensed consolidated income statements, statements of
financial position, statements of cash flows and other financial and
operating data
1. Accounting policies
The condensed consolidated statement of financial position, income
statement and statements of cash flows included in this announcement
have been prepared in accordance with IFRS accounting policies. The
accounting policies are consistent in all material respects with those
applied in the preparation of the consolidated financial statements for
the year ended March 31, 2014. No new or revised accounting standards
have been adopted by the Group in fiscal 2015.
The results have not been audited or reviewed by the Group's external
auditors.
2. Presentation currency and convenience translation
The Group’s presentation currency is South African Rand. In addition to
presenting these condensed consolidated financial results for the
quarter ended December 31, 2014 in South African Rand, supplementary
information in U.S. Dollars has been prepared for the convenience of
users of this report. Unless otherwise stated, the Group has translated
U.S. Dollar amounts from South African Rand at the exchange rate of
R11.5719 per $1.00, which was the R/$ exchange rate reported by the
South African Reserve Bank as of December 31, 2014. The U.S. Dollar
figures may not compute as they are rounded independently.
|
3. Earnings per share/ADS data
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
0.04
|
|
|
0.06
|
|
|
#
|
|
|
#
|
|
|
Diluted (R/$)
|
|
0.04
|
|
|
0.06
|
|
|
#
|
|
|
#
|
|
|
Earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
1.01
|
|
|
1.44
|
|
|
0.09
|
|
|
0.12
|
|
|
Diluted (R/$)
|
|
0.99
|
|
|
1.38
|
|
|
0.09
|
|
|
0.12
|
|
|
Attributable adjusted earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
0.03
|
|
|
0.03
|
|
|
#
|
|
|
#
|
|
|
Diluted (R/$)
|
|
0.03
|
|
|
0.03
|
|
|
#
|
|
|
#
|
|
|
Adjusted earnings per American Depositary Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic (R/$)
|
|
0.64
|
|
|
0.87
|
|
|
0.06
|
|
|
0.08
|
|
|
Diluted (R/$)
|
|
0.63
|
|
|
0.83
|
|
|
0.05
|
|
|
0.07
|
|
|
Ordinary shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In issue at December 31
|
|
792,838
|
|
|
773,688
|
|
|
792,838
|
|
|
773,688
|
|
|
Weighted average
|
|
791,537
|
|
|
773,046
|
|
|
791,537
|
|
|
773,046
|
|
|
Diluted weighted average
|
|
804,398
|
|
|
808,657
|
|
|
804,398
|
|
|
808,657
|
|
|
American Depositary Shares ('000)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In issue at December 31
|
|
31,714
|
|
|
30,948
|
|
|
31,714
|
|
|
30,948
|
|
|
Weighted average
|
|
31,661
|
|
|
30,922
|
|
|
31,661
|
|
|
30,922
|
|
|
Diluted weighted average
|
|
32,176
|
|
|
32,346
|
|
|
32,176
|
|
|
32,346
|
|
|
# Amount less than $0.01
|
|
|
|
|
|
4. Reconciliation of Adjusted Earnings to Profit for the Period
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Profit for the period attributable to owners of the parent
|
|
31,991
|
|
|
44,617
|
|
|
2,763
|
|
|
3,857
|
|
|
Net foreign exchange gains
|
|
(17,658
|
)
|
|
(24,429
|
)
|
|
(1,526
|
)
|
|
(2,111
|
)
|
|
Income tax effect on the above component
|
|
6,049
|
|
|
6,652
|
|
|
524
|
|
|
573
|
|
|
Adjusted earnings attributable to owners of the parent
|
|
20,382
|
|
|
26,840
|
|
|
1,761
|
|
|
2,319
|
|
|
|
|
5. Reconciliation of Adjusted EBITDA to Profit for the Period
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Adjusted EBITDA
|
|
68,385
|
|
|
65,512
|
|
|
5,909
|
|
|
5,663
|
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
700
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
Net profit on sale of property, plant and equipment and intangible
assets
|
|
—
|
|
|
225
|
|
|
—
|
|
|
19
|
|
|
Insurance reimbursement (1)
|
|
3,237
|
|
|
—
|
|
|
280
|
|
|
—
|
|
|
Net litigation costs (2)
|
|
700
|
|
|
—
|
|
|
60
|
|
|
—
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation (3)
|
|
(15,700
|
)
|
|
(13,413
|
)
|
|
(1,357
|
)
|
|
(1,159
|
)
|
|
Amortization (4)
|
|
(13,182
|
)
|
|
(12,140
|
)
|
|
(1,139
|
)
|
|
(1,049
|
)
|
|
Impairment of property, plant and equipment (5)
|
|
(545
|
)
|
|
(414
|
)
|
|
(47
|
)
|
|
(36
|
)
|
|
Share-based compensation costs
|
|
(1,657
|
)
|
|
(1,191
|
)
|
|
(143
|
)
|
|
(103
|
)
|
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
(188
|
)
|
|
—
|
|
|
(16
|
)
|
|
—
|
|
|
Restructuring costs (6)
|
|
(10,645
|
)
|
|
—
|
|
|
(920
|
)
|
|
—
|
|
|
Transaction costs arising from the acquisition of a business
|
|
(93
|
)
|
|
(45
|
)
|
|
(8
|
)
|
|
(4
|
)
|
|
Net realized foreign exchange gains
|
|
—
|
|
|
(130
|
)
|
|
—
|
|
|
(11
|
)
|
|
Operating profit
|
|
31,012
|
|
|
38,404
|
|
|
2,679
|
|
|
3,320
|
|
|
Add: Finance income/(costs) - net
|
|
19,864
|
|
|
24,921
|
|
|
1,716
|
|
|
2,154
|
|
|
Less: Taxation
|
|
(18,978
|
)
|
|
(18,708
|
)
|
|
(1,640
|
)
|
|
(1,617
|
)
|
|
Profit for the period
|
|
31,898
|
|
|
44,617
|
|
|
2,755
|
|
|
3,857
|
|
|
(1)
|
|
Insurance reimbursement related to the helicopter asset
impaired during the second quarter of the 2015 fiscal year.
|
|
(2)
|
|
Includes insurance proceeds received.
|
|
(3)
|
|
Includes depreciation of property, plant and equipment
(including in-vehicle devices).
|
|
(4)
|
|
Includes amortization of intangible assets (including product
development costs).
|
|
(5)
|
|
Includes R0.5 million ($0.04 million) impairment of computer
equipment and furniture and fittings which is related to the
restructuring described in note 9: Restructuring.
|
|
(6)
|
|
Restructuring costs incurred are described in note 9:
Restructuring.
|
|
|
|
6. Reconciliation of Adjusted EBITDA Margin to Profit for the
Period Margin
|
|
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Adjusted EBITDA margin
|
|
19.5
|
%
|
|
21.1
|
%
|
|
Add:
|
|
|
|
|
|
|
|
Net realized foreign exchange losses
|
|
0.2
|
%
|
|
—
|
|
|
Net profit on disposal of property, plant and equipment and
intangible assets
|
|
—
|
|
|
0.1
|
%
|
|
Insurance reimbursement
|
|
0.9
|
%
|
|
—
|
|
|
Net litigation costs
|
|
0.2
|
%
|
|
—
|
|
|
Less:
|
|
|
|
|
|
|
|
Depreciation
|
|
(4.5
|
%)
|
|
(4.3
|
%)
|
|
Amortization
|
|
(3.8
|
%)
|
|
(3.9
|
%)
|
|
Impairment of property, plant and equipment
|
|
(0.2
|
%)
|
|
(0.2
|
%)
|
|
Share-based compensation costs
|
|
(0.4
|
%)
|
|
(0.4
|
%)
|
|
Net loss on sale of property, plant and equipment and intangible
assets
|
|
(0.1
|
%)
|
|
—
|
|
|
Restructuring costs
|
|
(3.0
|
%)
|
|
—
|
|
|
Transaction costs arising from the acquisition of a business
|
|
(0.0
|
%)
|
|
(0.0
|
%)
|
|
Net realized foreign exchange gains
|
|
—
|
|
|
(0.0
|
%)
|
|
Operating profit margin
|
|
8.8
|
%
|
|
12.4
|
%
|
|
Add: Finance income/(costs) - net
|
|
5.7
|
%
|
|
8.1
|
%
|
|
Less: Taxation
|
|
(5.4
|
%)
|
|
(6.1
|
%)
|
|
Profit for the period margin
|
|
9.1
|
%
|
|
14.4
|
%
|
|
|
|
7. Reconciliation of Free Cash Flow to Net Cash Generated from
Operating Activities
|
|
|
|
South African Rand
|
|
United States Dollar
|
|
Figures are in thousands unless otherwise stated
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
Three Months
Ended December
31, 2014
|
|
Three Months
Ended December
31, 2013
|
|
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Unaudited
|
|
Net cash generated from operating activities
|
|
60,642
|
|
|
50,137
|
|
|
5,241
|
|
|
4,333
|
|
|
Capital expenditure
|
|
(31,312
|
)
|
|
(32,966
|
)
|
|
(2,706
|
)
|
|
(2,849
|
)
|
|
Free cash flow
|
|
29,330
|
|
|
17,171
|
|
|
2,535
|
|
|
1,484
|
|
|
|
8. Contingent Liabilities
Service agreement
In terms of an amended network services agreement with Mobile Telephone
Networks Proprietary Limited (“MTN”), MTN is entitled to claw back
payments from MiX Telematics Africa Proprietary Limited in the event of
early cancellation of the agreement or certain base connections not
being maintained over the term of the agreement. No connection
incentives will be received in terms of the amended network services
agreement. The maximum potential liability under the arrangement is
R52.8 million ($4.6 million). No loss is considered probable under this
arrangement.
Taxation
MiX Telematics International Proprietary Limited ("MiX International"),
a subsidiary of the Group, claims a 150% allowance for research and
development spend in terms of section 11D ("S11D") of the South African
Income Tax Act of 1962 ("the Act"). As of October 1, 2012, the
legislation relating to the allowance was amended. The amendment
requires pre-approval of development project expenditure on a project
specific basis by the South African Department of Science and Technology
("DST") in order to claim a deduction of the additional 50% over and
above the expenditure incurred (150% allowance). Since the amendments to
S11D of the Act, MiX International had been claiming the 150% deduction
resulting in a recognized tax benefit of R8.5 million ($0.7 million).
MiX International has complied with the amended legislation by
submitting all required documentation to the DST in a timely manner,
commencing in October 2012.
In June 2014, correspondence was received from the DST indicating that
the research and development expenditure on certain projects for which
the 150% allowance was claimed did not constitute qualifying expenditure
in terms of the Act. MiX International is currently in the process of
formally objecting to the DST’s decision to disallow the expenditure
(for which a tax asset benefit of R2.7 million ($0.2 million) has been
recognized). If the Group is unsuccessful in defending this specific
matter, and if the same principles are applied to other projects, the
Group may incur an additional taxation expense of up to R8.5 million
($0.7 million) relating to the additional 50% claimed, with a
corresponding increase in current taxation payable.
9. Restructuring
During the period, the Africa and the Middle East and Australasia
segments implemented restructuring plans. The total cost of the
restructuring plans is expected to be approximately R10.6 million ($0.9
million). The restructuring plans are expected to result in operating
cost savings for the segments in future.
10. Business combination
During the period, the Group acquired the operating business of Compass
Fleet Management Proprietary Limited (“Compass”), a provider of
specialized fleet management solutions delivered off the Group’s
hardware and software platform. The purchase consideration is a cash
consideration of R58.0 million ($5.0 million) of which, R18.0 million
($1.6 million), will be held in trust and is contingent on the
achievement of agreed revenue and profit targets for the period November
1, 2014 to March 31, 2015.
As per IFRS 3, the Group has 12 months from the acquisition date to
finalize the at acquisition date fair values of the identified acquired
assets and liabilities. From the acquisition date, revenue of R9.7
million ($0.8 million) has been recorded by the business acquired and
profits of R0.3 million ($0.02 million) have been included in profit or
loss.
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